Judge Ejects Dodgers' $150M DIP Financing Plan

Law360, Wilmington (July 22, 2011, 5:53 PM EDT) -- A Delaware bankruptcy judge on Friday shot down the Los Angeles Dodgers’ bid for $150 million of debtor-in-possession financing from a hedge fund, leaving a pinch-loan from Major League Baseball as the team's only option to finance its reorganization.

U.S. Bankruptcy Judge Kevin Gross found that the Dodgers’ refusal to negotiate with MLB on its alternative, unsecured loan ran afoul of a Bankruptcy Code provision demanding a debtor seek unsecured financing. The Dodgers’ preferred financing, provided by JPMorgan-affiliated hedge fund Highbridge Principal Strategies LLP, was secured...
To view the full article, register now.